Myeongryun Jinsa Galbi Faces FTC Review Over Franchise Loans and Interior Costs

Myeongryundang, the operator of the restaurant brand Myeongryun Jinsa Galbi, has become subject to review by South Korea’s Fair Trade Commission over allegations that it provided high-interest loans to franchise owners and imposed excessive interior construction costs. According to Yonhap News Agency, the company had already drawn controversy for running high-rate lending involving franchisees, while the way interior expenses were calculated and charged also came under scrutiny. The review will examine whether transaction terms between the franchisor and franchisees were fair. Any final sanctions and their level are expected to be decided after the commission’s deliberation. Source: yna.co.kr